This paper argues that the case of product differentiation of concentrated markets (i.e., innovation competition) is one where production per unit of profit of non-financial corporations is lower than in competitive mass production and profit share is not an increasing function of capacity...

This paper analyses the impact of variations of product demand on the amount of internal slack in multi-plant firms in a model in which facilities can produce output at a privately known cost up to a previously determined capacity level. It is shown that the amount of slack in the firm is...

Multi-plant firms pit their facilities against each other for production assignments. The present paper studies the consequences of that practice in a model where production is limited by capacity constraints and asymmetric information allows facilities to accumulate slack. The amount of slack...